TNAG-2623-FCO40-3814-Visits-by-Alastair-Goodlad--Minister-of-State-for-Foreign-an-1992 — Page 36

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in infrastructure development.

I explained that our own funds

are limited. But it is evident that relatively small

contributions of aid make a high return. For example, I was

able to announce the second phase of a special joint funding

scheme for a land reclamation scheme which will create farming

land for 20,000 people, at a cost of only £90,000.

13. They also raised the US embargo and the IFIS with me: I

was able to say that we were arguing their case with the

Americans. It is only when World Bank or ADB funds become

available that the real infrastructure problems can be tackled.

If we are not in on small, cost-effective projects now, we will

lose our position when the bigger contracts become available.

The second

V

14. I spent some time looking at the EC International

Reintegration Programme.

and main phase of this

has hardly taken off, partly due to bureaucratic problems on

both sides. I am clear that the mixture of credits and

micro-projects available under the Programme is the right

balance and that this is the key to stopping further migration.

But I am concerned at the delays and suspect that too much money is going on expatriate consultancies.

I will be taking

this up direct with Lynda Chalker.

15. The Vietnamese are extremely enthusiastic about the

economic reform training we are providing. I hope there will be scope to take on further students downstream. There is also a

huge market for ELT (and the British Council are interested in

opening up in Vietnam). I appreciate that resources are finite, but we might be able to utilise VSOS in this field as a

low-cost solution.

16. On other foreign policy issues, the Vietnamese were openly

worried about China. They appreciate our locus in Hong Kong

and the P5 and were grateful for the representations we have

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